Obama to name 5 'Promise Zones' for assistance

Jan. 8, 2014
|

President Obama / Alex Wong, Getty Images

by David Jackson, USA TODAY

by David Jackson, USA TODAY

President Obama will designate troubled neighborhoods in five cities and areas as "Promise Zones," eligible for tax breaks and other forms of assistance designed to create jobs and improve education, housing and public safety.

The first five Promise Zones will be located in San Antonio, Philadelphia, Los Angeles, southeastern Kentucky, and the Choctaw Nation of Oklahoma, said a White House statement.

Obama plans to make a formal announcement Thursday.

Under the proposed Promise Zones, the federal government plans to partner with local governments and businesses to provide tax incentives and grants to help combat poverty. The project is part of Obama's effort to address income inequality.

In his State of the Union Address a year ago, Obama said his administration plans "to partner with 20 of the hardest-hit towns in America to get these communities back on their feet. We'll work with local leaders to target resources at public safety, and education, and housing."

One prominent Republican -- Senate Minority Leader Mitch McConnell of Kentucky -- praised the proposed Promise Zone for Eastern Kentucky, but also said Obama policies have contributed to the region's problems.

"I wrote a letter last year supporting this designation because this region has suffered enormous economic hardship over the last several years," McConnell said in a statement. "Thousands of jobs have been lost and economic opportunity is extremely limited, particularly because of this administration's hostile policies toward the coal industry."